How are my cryptocurrency gains taxed in the UK?

Many investors in cryptocurrencies have made big gains. But once you take profits – or even buy one cryptocurrency with another – you could be liable for capital gains tax. Saloni Sardana explains how it works.

Cryptocurrency tokens
Swap one coin for another – or any other asset – and you could trigger a disposal for capital gains tax purposes
(Image credit: © Ulrich Baumgarten via Getty Images)

Cryptocurrency investors have had a rough time recently. From the spectre of higher taxes being proposed by US president Joe Biden to the “Elon Musk effect”, the market has given investors plenty of reasons to be happy and worry alike. So for some, their profits will be the last thing on their minds right now.

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni